sez in india

Background and purposes of SEZs

  1. SEZs have been set up under SEZ Act 2005 to promote exports from India.
  2. To promote manufacturing in India.
  3. Attract FDI


sez issues

  1. Government has been accused to be biased towards the industries at the cost of farmers and land owners.
  2. Farmers coerced to sell their land, most of which has been fertile land, leading to loss of cultivation in the country.
  3. As per the CAG report, 80% of the 4842 hectares of allotted land has been unutilised.
  4. The SEZ has brought both social and economic disadvantages to the country.
  5. States have negotiated for the corporates, promoting crony capitalism.
  6. Farmers became jobless, so were their sons deriving job from agriculture. Dependency increased on the compensation which has been neither timely nor adequate.
  7. Tax breaks, cheap electricity to the promoters of SEZ also costed the state it’s revenue. It was rather a waste.
  8. Out of the expected 12.5 lakh job opportunities SEZ was intended to create, only 42,000 have been created.
  9. The other issues like the lack of skill development, multiple regulatory compliance certificates etc have called for a serious review of the SEZ policy of the government.
  10. There has to be a coordinated approach. SEZs are welcome but the sops given must be linked with the performance and results.
  11. Bharatmala, Sagarmala, skill development programmes, Make in India etc schemes have to be integrated along with the Foreign Trade Policy (FTP) 2015-20 to derive the maximum out of the allocation to SEZs.